【ARCFE News】 Iowa Plans to Pass Legislation Banning Universities From Hiring H-1B Visa Holders
- ARCFE U.S.
- 15 hours ago
- 5 min read
In recent weeks, a proposed bill in Iowa has drawn significant attention from Chinese international students and families planning long-term careers and residency pathways in the U.S. The legislation, known as HF 2513, would prohibit public universities in Iowa from entering into new employment agreements with certain H-1B visa holders from a list of designated countries. The bill has already passed the Iowa House of Representatives and has advanced through the Senate Labor Committee, moving closer to a final vote. If enacted, the new restrictions would take effect on July 1, 2026, and apply to all new employment contracts moving forward.
The proposed legislation carries broad implications, extending beyond Iowa’s public university system to include community college and certain state-funded private institutions. Under the bill, the restrictions would apply specifically to nationals from seven designated countries: China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria.
What Does This Mean For International Students?
For many international students, universities and research institutions have traditionally been viewed as a more stable alternative to the highly competitive H-1B lottery system in the private sector. Academic institutions, research organizations, and postdoctoral programs have long provided a relatively reliable pathway for employment sponsorship and long-term career planning in the U.S. However, recent legislative development indicates that even this pathway may now face increasing policy uncertainty. As regulatory scrutiny expands, international students and professionals may encounter a more complex and evolving landscape when evaluating long-term employment and immigration options in the U.S.
Not only in Iowa, but similar policy shifts have also emerged in other states. Earlier this year, in January, Texas Governor Greg Abbott directed state agencies and public universities to suspend new H-1B petitions. In Florida, lawmakers have also moved forward with measures aimed at tightening the use of H-1B visas within the higher education sector.
This latest wave of state-level proposals also comes against the backdrop of renewed federal-level discussions around the future of the H-1B program. In recent months, multiple bills have been introduced in the U.S. House of Representatives proposing to terminate the H-1B visa program, reflecting a broader and more sustained policy debate around skilled immigration.
Even without these emerging policy changes, international students already face significant challenges in securing employment in the U.S. Under normal circumstances, outcomes depend on a combination of factors, including job search success, employer willingness to sponsor, universities’ ability to file petitions, or in many cases, the uncertainty of being selected in the H-1B lottery.
With the H-1B program now facing increased scrutiny at both the federal and state levels, and with ongoing discussions around potential program elimination, these challenges are becoming even more pronounced. In this environment, it is becoming increasingly difficult for international students to secure employment opportunities in the first place, as many employers are reluctant to invest significant time and resources in hiring and training candidates when the expected employment horizon may be limited to just one year of authorized work eligibility.
Not Just H-1B, F-1 OPT is Also At Risk
An upcoming immigration rule expected under the Trump administration could significantly reshape, or even eliminate, the Optional Practical Training (OPT) or STEM OPT programs for international students. OPT currently allows international students to work in their field of study for a cumulative of 12 months before or after graduation, while STEM OPT extends this period by an additional 24 months for graduates in the science, technology, engineering, and mathematics fields. Together, these programs serve as a critical bridge for many students transitioning from F-1 to longer-term employment opportunities in the U.S. The primary goal of this proposal is to prevent international students from obtaining H-1B status.
If the program is not fully removed, another possibility is the introduction of additional restrictions. These could include higher compliance burdens for employers, wage-related requirements, or increase administrative oversight for companies hiring OPT and STEM OPT workers. There is also a concern that changes to student visa policy, such as replacing “duration of status” with fixed admission periods, could indirectly limit access to OPT by making it harder for students to maintain eligibility through graduation and transition periods. In practice, even modest regulatory changes could reduce employer participation, as OPT hiring is generally viewed as low-friction compared to traditional work visa sponsorship processes.
Why Are More Families Exploring Long-Term Immigration Alternatives?
As pathways to long-term U.S. residency become more competitive and uncertain, more international students and families are beginning to reassess whether their future should continue to rely on a single, increasingly constrained route. One of the key risks in immigration planning is waiting until policy changes occur before considering alternatives. For individuals currently navigating study, OPT, or H-1B transitions, it is becoming increasingly important to evaluate both short-term status and long-term options in parallel. Early planning often translates into greater flexibility and reduces uncertainty later on.
Strategize Your Green Card Journey With EB-5
EB-5 is a U.S. investment immigration program that allows foreign nationals to obtain a green card by making a qualifying investment in an EB-5 project that creates or preserves jobs for American workers. In exchange for meeting the required investment and job creation criteria, eligible applicants can obtain permanent residency in the U.S. Compared to traditional pathways such as F-1 to H-1B followed by employer-sponsored EB-2/EB-3 green cards, the EB-5 program offers a more direct and independent route to permanent residency. It does not rely on employer sponsorship, a job offer, or luck in the H-1B lottery, all of which introduce significant uncertainty and timing constraints.
One of the key advantages of the EB-5 program under the current Reform & Integrity Act of 2022 (RIA) framework is that it allows for concurrent filing. Eligible applicants who are currently in the U.S. may file Form I-526E (immigrant petition) and Form I-485 (adjustment of status) at the same time. This will allow applicants with pending I-526E petitions to obtain work authorization (EAD) and advance parole (travel document).
While the current “no backlog” environment under the EB-5 RIA presents meaningful advantages, it is not permanent. Given evolving visa allocation dynamics, filing demand, and policy implementation trends, this window may be time-sensitive. Furthermore, under the RIA framework, EB-5 minimum investment thresholds are scheduled to be reviewed and adjusted every five years. The first scheduled adjustment is set to take effect on January 1, 2027. Currently the minimum investment for a TEA-qualified project is $800,000 and non-TEA project is $1,050,000. Based on the inflation trends over recent years and industry analysis, projections suggest that the TEA threshold could rise to approximately $900,000 - $937,500, while non-TEA threshold may increase to $1,250,000. Final numbers will ultimately be determined by the official updates issued by the USCIS and DHS.
The EB-5 process cannot be completed as a last-minute decision close to key policy or filing milestones. Each stage, including project selection, source of funds analysis, international funds wires, document preparation, petition filing, requires a coordinated timeline and careful execution. These steps often involve multiple parties and cross-jurisdictional considerations, making early preparation essential. Beginning the preparation process early is generally recommended to ensure sufficient time for a structured and well-supported application process.
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